India restricts China’s participation in the coal sector


The government has put a halt to the participation of companies of China in the auction of coal mines for commercial purposes by the private sector.
Government route
A press release had been issued by the Government of India stating that all the commercial activities happening in areas sharing a land border with China shall be done under the Government route, hereon. The main motive of such an instruction was to keep a check on the activities of the Chinese companies amidst the border tensions between both countries. A thorough eye is also been kept on the import activities of China to prevent any kind of mishap or discrepancy.
Coal mines
The mines being talked about are the ones that can be brought under production on an immediate basis. There are four coal mines on offer that have the possibility of providing inputs to the steel sector. These mines are located in Jharkhand, Madhya Pradesh, Odisha and Maharashtra. This auction is different from the earlier auctions of sectors with some restrictions. The uses and prices differ as well. Now, these restrictions have been removed.
Pakistan and coal sector
According to the new instructions by the Government, a tender regarding the role of Pakistan in the coal auction has been issued. The tender states that a resident or an entity of Pakistan is allowed to invest but only under the Government route. This activity can be done in sectors other than defence, space, atomic energy, and other sectors prohibited for foreign investment.
This instruction has been issued for the benefit of the investors. It has made it clear to ensure that the investors are not caught unaware of such clauses under the Indian rule.
With the massive border tensions in Ladakh, various sectors are undergoing major changes and the coal sector is one of many such sectors.

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